Successful long-term investing is all about staying exposed to high-quality businesses over time.
For investors with a multi-year horizon, ASX exchange traded funds (ETFs) can be powerful tools.
They offer diversification, reduce single-stock risk, and make it easier to stay invested through market cycles. The key is choosing ETFs that are built to compound rather than chase short-term trends.
With that in mind, here are three ASX ETFs that stand out for long-term investors.
VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)
The first ETF that could be a top long-term option is the VanEck Morningstar Wide Moat AUD ETF. It is designed around one simple idea: owning businesses that are hard to compete with.
This ASX ETF invests in US stocks that are judged to have sustainable competitive advantages, such as strong brands, high switching costs, or dominant market positions. Just as importantly, it targets these companies when they are trading at attractive prices.
For long-term investors, this approach encourages patience and discipline. Rather than constantly rotating into what is fashionable, the VanEck Morningstar Wide Moat AUD ETF focuses on quality businesses that can defend profits over many years. That combination of competitive strength and valuation support makes it well suited to long-term ownership.
iShares S&P 500 ETF (ASX: IVV)
The iShares S&P 500 ETF is another ASX ETF that could be a good option for long-term investors. It offers exposure to the backbone of global equity markets.
This ETF tracks the S&P 500 Index, which includes many of the world's largest and most profitable companies. Over long periods, this group of businesses has demonstrated a strong ability to adapt, innovate, and grow earnings.
For long-term investors, the iShares S&P 500 ETF provides scale and simplicity. It is not reliant on any single sector or trend, yet it still captures global innovation through established market leaders. Holding this fund allows investors to participate in global growth without needing to predict which individual company will outperform next.
Betashares Global Quality Leaders ETF (ASX: QLTY)
Finally, the Betashares Global Quality Leaders ETF could be worth considering for a buy and hold investment. It takes a more selective approach to global investing.
This ASX ETF focuses on stocks that score highly in certain quality metrics. This includes returns on equity, balance sheet strength, and earnings stability. These characteristics often point to businesses with strong management, pricing power, and resilient business models.
For long-term investors, the Betashares Global Quality Leaders ETF offers a smoother way to access global markets. By prioritising quality metrics, it aims to reduce exposure to weaker balance sheets and more volatile earnings profiles. This is never a bad idea when making long-term investments.
The team at Betashares recently recommended the fund to investors.
